Technical Analysis: Just A Pullback So Far
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Internals held up again on today's pullback, with new highs and lows actually improving on the day. It's going to be hard to get a strong pullback as long as the indexes are holding up internally. The indexes (first three charts below) are coming up on a whole lot of resistance: 1940-2000 on the Nasdaq, 1052 on the S&P, and everything from here to 10,008 on the Dow. Support is 1900 and 1888 on the Nasdaq, 1032 on the S&P, and 9610 on the Dow, where the index bounced today. Finally, a stab at an Elliott wave count on the S&P (fourth chart): it is nearing a point where a completed 5-wave move off the March lows could be done or near completion. If that's the case, a strong correction could materialize soon. We'll label that as strictly speculative until there's some evidence of selling pressure.